Avenues for growth: Ways to expand a business

Michael Giuffrida has seen his share of companies expand and reach their potential. For most businesses, expansion is the telling factor that they have indeed attained success. And there are a number of ways to expand, which we will be discussing today.

First, a business may open branches in multiple locations. However, this takes time. Profits have to be consistent, and locations have to be researched carefully to ensure that a viable market exists for the company’s products or services.

Similarly, a company can opt for a franchising model. Through franchising, companies allow newer investors to buy into the business and use its brand via a new branch. These new investors or franchise owners will still be guided by the mother company’s business strategies, but they will also be more hands-on.

Then, there’s product licensing, which many business owners opt for due to its more secure nature. It doesn’t cost as much as opening a new branch or franchising but is nonetheless effective, albeit with a smaller profit than the previous two avenues of expansion. Product licensing allows for a continues cash flow via royalties from licensed products.

Finally, companies can partner up with the government at an official capacity. With the government as one of a company’s main clients, there will always be funding. This, however, Michael Giuffrida notes, takes a lot of work, and in all probability may require more manpower. It does make a company more stable, though.

Michael Giuffrida is a managing partner at Titan Strategic Partners. He is an experienced entrepreneur with expertise in business management, profitable growth, business valuation, mergers and acquisitions, and information technology managed services. Learn more about his field here.